More and more, in recent years, especially, model portfolios are finding their mojo, according to wealthsolutionsreport.com.
Within the financial advice industry, they’re hitting traction and, for wealth managers, have evolved as a solution – and a compelling one, at that.
In 2020, the estimated value of assets under management in model portfolios hit $3 trillion. The catalyst? To a degree, exchange traded funds don’t take as big a hit out of the wallet. Not only that, the fact the trend toward comprehensive financial planning strategies is ongoing.
Meantime, a little time travel, anyone?
In the next five years, the model portfolio realm of money management is expected to balloon to a business of $10 trillion, BlackRock Inc, expects, according to advisorhub.com.
“It’s going to be massive,” said Salim Ramji, global head of iShares and index investments at the asset manager, on Bloomberg Television’s ETF IQ. “It’s the way in which more and more fiduciary advisers are doing business, and, as a result, that’s the way in which we’re doing business with them.”
